Wholesale Selling Terms Apparel Manufacturing Management

Apparel Wholesale Selling Terminology

These are wholesale selling terms that I studied in this FIDM class:

MFTG

2680

WHOLESALE SELLING

The class was instructed by, and these terms provided by: Mark Colonomos  Professor, Lecturer, Counselor Greater Los Angeles Area  Higher Education Current Lecturer and Counselor at SCORE.LA. Vice-President at SCORE, Los Angeles Instructor at FIDM Past DIRECTOR at Volunteers of America Education Fashion Institute of Design & Merchandising New York University

Wholesale Selling Terminology  Carla Buchanan
Accounts receivable financing	same as factoring, but without the insurance and guarantees
Bar Code	a series of lines usually in a vertical formate that distinguishes the product
Branded	a manufacturer label, or name, that has customer identification, usually through advertising or reputation
Buyers Matrix	a list of vendors that have been approved or authorized to do business with the retailer
Bill of Lading	a record in multiple copies of numbers of cartons, weight, and details of shipment
CAD	a software program for computer assisted designs that enable the manufacturer to display and make changes for the customer pre-samples
Care and Content label	every garment must have content and washing instructions
Charge backs	deductions taken by the retailers for various reasons, as in shortages, late shipments, violations, advertising, discounts, or allowances
Closeouts	merchandise offered at a discount price
C.O.D.	cash on demand upon delivery of goods, no exceptions
Confirmation number	usually refers to the order number that confirms that the purchase is in the retailers system
Consolidator	a shipping point or trucking firm that receives merchandise and sorts it in order to be delivered to different regions of the country, sometimes by other trucking firms
Converter	A firm that takes unfinished goods and processes them as in dyeing, bleaching or printing
Consignment	goods stocked by retailer by not paid for until they are sold
Co-op advertising	contributions made by the seller towards the advertising of their product
Dating	extra time give to the retailer to pay for goods as in + 30 days to +60 days
Delivery date	the date by which the merchandise must be shipped to avoid cancellation
Distribution/breakout	usually refers to a buyers allotment of where and how to ship the goods
EDI	electronic data input: computer generated orders, box labels, shipping manifests and instructions supplied by the retailer to the manufacturer
Extensions	additional time given to the manufacturer to ship the merchandise
8/10 EOM	standard terms used by most retailers giving them an 8% discount if they pay by the 10th of the month on goods that are shipped before the 20th of the previous month
Factor	a bank or finance company that usually guarantees or insures the payment to you by the retailer and allows you to borrow money against the invoice you have submitted before it is paid
FOB	defined as freight on board and refers to what location the shipment is being generated from
Four Way	a rack with 4 extensions usually cascading in a downward motion used for maximum visibility
Gray market goods	merchandise not exactly legal as an unauthorized import, usually sold at a discount or as is
Gross markup or margins	the percentage of profit the department must make to satisfy their buying plan
Hang tags	logo driven tags that can include information about the product
Intellectual property	designs, inventions or literary work that have been patented, copyrighted, or trademarked
Invoice	the bill for goods shipped
Jobber	term used for a person who buys finished goods, either closeouts or regular price, and them resells them
Key item	this refers to the lead or main product/garment in the group and is usually the largest buy
Keystone	the process of doubling the cost to achieve retail price, cost $10, sell for $20
Knock off	term used in describing a product that is copied from another manufacturer’s line
Line sheets	a descriptive and informative presentation on paper that describes your product
Markdown allowance	deductions given to the retailer to cover their gross margin
Market week	a period in every season when most buyers come in for presentations by their offices and to purchase the next seasons goods
Merchandise mart	usually an office building local to the area where manufacturers have showrooms and offices, making it convenient for buyers to shop their lines
Net	The price the retailer pays after all the discounts are takes
Open to buy	the amount of funds allocated to the buyer for her department usually calculated by season
Pallet	a wooden base with openings for a fork lift truck that is used for handling large lads at a time
Pilferage	merchandise that is either lost or stolen
Pre-pack	an assortment of merchandise packed in certain quantities of sizes and colors
Pre-tickets	price tickets that are attached to the merchandise with all the pertinent information for the customer usually including the SKU
Private label	a process where the store’s own label is sewn into your merchandise
Production samples	product taken off the production line for pre-approval prior to shipping
Pro number	a sequence of numbers given to the shipper by the trucker used to track the merchandise, also know as the tracking number
Quota	a limit set on the quantity of product that can be imported to the United States
Rep	usually a sales company or individual, that represents numerous lines on a commission basis
Returns	merchandise sent back to the manufacturer that is either damaged, or refused shipment
RN number	a federally mandated series of numbers that must be included in the garment, used to identify the company of origin
ROG	payment referred to as being due at receipt of goods
Rounder	goods that are displayed and hung on a circular rack
Seconds	merchandise with slight flaws sold at lower prices
Seeing day	usually a day and time that a buyer has open hours to see vendors
Sell through	the number of weeks it would take to sell all of the product from start to finish
Shipping manifest	paperwork that is included with the shipment detailing its contents
Size breakdown	a preset range of sizes established by the manufacturer to insure maximum efficiency as to not waste fabric and take into consideration the needs of the retail customer
Size run	refers to a complete assortment of all sizes in the range
SKU	a bar code used in retail to identify the merchandise in detail
Specs	a comprehensive layout of all of the measurements in a garment
Story boards	a presentation usually laid out on large boards encompassing groups and ideas together
T-stand	merchandise displayed on a rack resembling a T, a high profile, visual presentation
Table goods	usually refers to product displayed on a table as opposed to hanging on a display racks
Trade shows	a convention of sorts set up by different categories where companies can display their merchandise and have access to hundreds of buyers
Turn time	the time needed for a company to manufacture their product from start to finish
Vendor number	a series of identification numbers assigned to the manufacture by the retailer
Vertical manufacturer	a company that manufactures the entire product in house or without the use of contractors